ASX: GGG March 2016 Quarterly Report April 29 th, 2016 Highlights: Governments of Greenland and Denmark reach landmark agreement on uranium exports A new joint Denmark-Greenland structure within Greenland s Department of Industry, Labour and Trade will share aspects of implementation of export controls, inspections and reporting Greenland Government ups promotional efforts with Trade Mission to South Korea Support infrastructure strategy for Kvanefjeld advances; Letter of Intent signed with European Industrial to develop power concept based on hydropower Mining License Application - considerable progress on application processing with initial reviews received on key components including environmental and social impact assessments and maritime study Kvanefjeld Feasibility Update sees significant improvements to projects economic metrics, whilst drawing on conservative assumptions GMEL s capital costs down significantly to US$832M NPV (post-tax) increased to US1.58B, IRR increased to 43.4% Update draws on technical developments achieved in 2015 Feasibility Update demonstrates the strengths of the Kvanefjeld Project, strong leverage to growing permanent magnet sector, and competitiveness in a low pricing environment PERTH: Unit 6, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904 Telephone: +61 8 9382 2322 Facsimile: +61 8 9382 2788 GREENLAND: PO Box 156, Narsaq, Greenland 3921 WEB: www.ggg.gl EMAIL: info@ggg.gl ABN: 85 118 463 004
Contents March 2016 Quarter Activities 1 Greenland and Denmark Reach Landmark Agreement on Uranium Exports 1 Letter of Intent Signed to Develop Hydropower Strategy 2 Kvanefjeld Feasibility Update 2 Feasibility Update Summary of Results 4 Mining License Application Update 7 Greenland Government Ups Promotional Initiatives 7 About the Kvanefjeld Project 9 Tenure, Permitting, and Location 10 Capital Structure 11 Kvanefjeld Project - Statement of Identified Mineral Resources 12 PERTH: Unit 6, 100 Railway Road, Subiaco Western Australia 6008 POSTAL: PO Box 2006, Subiaco WA 6904 Telephone: +61 8 9382 2322 Facsimile: +61 8 9382 2788 GREENLAND: PO Box 156, Narsaq, Greenland 3921 WEB: www.ggg.gl EMAIL: info@ggg.gl ABN: 85 118 463 004
March 2016 Quarterly Activities The first quarter of 2016 saw continued regulatory developments in Greenland that are important to the Company s activities. Major progress in this area had taken place through 2015, with Greenland and Denmark working to ensure that Greenland s system is proficient in regards to radioactive materials, and compliance with international standards and best practice. In December 2015, the Greenland Government ratified its accession to a series of international conventions that relate to safety and handling or radioactive materials. In January 2016, the Governments of Greenland and Denmark reached formal agreement to establish an internal framework within the Kingdom of Denmark regarding the special foreign, defence, and security policies related to the mining and export of uranium from Greenland. The agreements reaffirm Greenland s full authority over its natural resources including environmental health and safety at any uranium (or thorium) production facility in Greenland and establish a framework under which Denmark will assume responsibility for nuclear non-proliferation and safeguards matters. Also during Q1, 2016, GMEL made significant progress with the support infrastructure strategy for the Kvanefjeld Project. In early March, the company announced that it had signed a letter of Intent (LoI), with a European multi-national conglomerate that specialises in energy provision to develop a power concept for the Kvanefjeld Project, based on renewable energy (hydropower). Utilising hydropower to produce raw materials that are critical to clean energy generation and new energy efficient technologies is an optimal outcome for the Kvanefjeld project, and will reduce the carbon footprint of the project and be advantageous to end product branding and carbon traceability. Through Q1 GMEL finalised a Feasibility Update for Kvanefjeld, following on from technical developments made in 2015. The Feasibility Update built on the outcomes of successful pilot plant operations conducted in 2015, and optimisation of the infrastructure layout that reduces civil earthwork requirements. The Update saw a reduction in GMEL s capital costs, and improvements to the projects Net Present Value (NPV), and Internal Rate of Return (IRR). Significantly, this was achieved whilst utilising more conservative pricing assumptions, and an increased discount rate, emphasizing the robustness and strength of the Kvanefjeld Project. Greenland and Denmark Reach Landmark Agreement on Uranium Exports On January 19 th, the Governments of Greenland and Denmark announced that they had reached formal agreement to establish an internal framework within the Kingdom of Denmark regarding the special foreign, defence, and security policy issues related to the mining and export of uranium from Greenland. This will lead to Danish legislation to implement safeguards and export regulations for uranium produced in Greenland. 1
Greenland assumed self-rule in 2009, but remains part of the Kingdom of Denmark. At the commencement of self-rule, Greenland assumed full authority over its mineral and hydrocarbon rights; however, its defence and foreign policies remain managed by Denmark. The production and export of uranium therefore requires cooperation between both Governments. The agreement represents another key step in Greenland enhancing its regulatory system to ensure that it is aligned with international standards and best practice associated with uranium and radioactive materials. It follows on from the Government of Greenland ratifying its accession to a series of international safety conventions relating to uranium in late 2015. These items are the end result of ongoing cooperative work by Greenland and Denmark, which follow the recommendations of a report into uranium mining and export, commissioned in 2013. The agreements reaffirm Greenland s full authority over its natural resources including environmental health and safety at any uranium (or thorium) production facility in Greenland and establish a framework under which Denmark will assume responsibility for nuclear non-proliferation and safeguards matters. A new joint Denmark-Greenland structure within Greenland s Department of Industry, Labour and Trade will share aspects of implementation of export controls, inspections and reporting. Denmark s nuclear safeguards and export control system will be modelled on the international standards practised in Australia, Canada, and Euratom (European Atomic Energy Community). The system will restrict uranium exports to states which are a party to the Nuclear Non-Proliferation Treaty and enter appropriate Nuclear Cooperation Agreements with Denmark to cover fall back safeguards, prior consent for re-transfers and other conditions similar to those applied by Australia, Canada, and the USA. Denmark and Greenland will present enabling legislation to their respective Parliaments in the upcoming spring sessions this year. This important development highlights the progress made by Greenland s authorities on regulatory aspects, which has taken place in parallel to GMEL working to establish an agreed development strategy with Greenland, and finalise an exploitation (mining) license application for Kvanefjeld. The application was successfully completed in late 2015, and handed over to Greenland s regulatory bodies. Letter-of-Intent Signed to Develop Hydropower Strategy Another important development in Q1, 2016 was the signing of a Letter of Intent (LoI) with a European multi-national conglomerate (the provider), that specialises in energy provision, to develop a power concept for the Kvanefjeld project, based on renewable energy (hydropower). The power solution will investigate the potential to link in to the existing public network, providing broader benefits for South Greenland. The set-up for the power solution would consider a Private Public 2
Partnership (PPP) model, in which GMEL would be an end-user. The provider will map out the entire concept and aim to bring in a partner for the main EPC contractor, civil work and financing. The agreement comes after an ongoing dialogue driven by the provider with the Government of Greenland and the Company. GMEL has been looking into third party infrastructure concepts to reduce capital costs in order to further enhance the projects economic metrics. The agreement to advance third party power solution is a significant step in progressing this strategy. Importantly, utilising hydropower to produce raw materials that are critical to clean energy generation and new energy efficient technologies is an optimal outcome for the Kvanefjeld project, and will reduce the carbon footprint of the project and be advantageous to end product branding. Upcoming Work Programs Under the agreement the provider has mapped out a three stage work program. The first stage will be the delivery of a power concept which will be completed within a couple of months, and will be incorporated into the mining license application prior to public hearing period. The power concept will draw off the information in the Kvanefjeld Feasibility Study, and the provider s in-depth experience and expertise in power provision solutions. The second phase would commence upon receipt of mining permits, and aim to take the power concept to bankable status. The third stage will involve the supply of electromechanical equipment for the hydro-power plant and the substation and grid control for the network. Kvanefjeld Feasibility Update In early April, 2016, GMEL completed an update to its Kvanefjeld Project Feasibility Study (FS), released May 25, 2015. The study update incorporates several modifications to the Kvanefjeld Project which significantly improve the Project s financial outcomes. The study update utilises current lower pricing assumptions and a higher discount rate than those used previously, in order to more accurately reflect prevailing economic conditions. The study update reiterates the clear potential to develop Kvanefjeld as a stable, long-life, profitable, low cost producer of critical rare earths and uranium. Highlights of the update: Following pilot plant operations, recoveries and production are higher Capital and operating costs are down; GMEL s capital cost now US $832M Project NPV has increased to US $1.59B (post-tax) 3
Project IRR has increased to 43.4% Average annual free cash flow of US $376M Cumulative free cash flow of US $8.88B Third party infrastructure financing initiatives are progressing During 2015, the key focus for GMEL was the completion of a mining license ( ML ) application for the Kvanefjeld Project. In Greenland, an ML application must include a comprehensive feasibility study and environmental and social impact assessments. The scopes of both of the impact assessments are only settled once the scope of the feasibility study has been determined. GMEL settled the scope of its feasibility study in 2014 and completed the study in May, 2015, which allowed for the environmental and social impact assessments to be successfully completed in Q4 2015. The ML application was then lodged with the Greenland Government for formal review Having finalised the scope for the FS, GMEL continued to investigate opportunities to enhance the Project and also conducted pilot plant operations to evaluate continuous metallurgical performance at large scale. A number of fundamental enhancements to the Project were identified through these steps and these have now been incorporated into the Company s Project valuation. Results The combined financial impact of the Project enhancements developed in 2015, as compared to the results of the Company s FS, can be summarised as follows: 1 The Project s net present value (NPV) has increased from $1.36 to $1.59B 2 The Project s internal rate of return (IRR) has increased from 21.8% to 43.4% 3 GMEL s project finacing requirement has been reduced to $832M The table below summarises the impact on Project financial metrics of 2015 s enhancements. For further information on the Feasibility Update, see the 6th April, 2016 Company ASX Announcement. 4
Table 1. A summary of the key financial metrics for the Kvanefjeld Feasibility Study Update (2016), with comparisons to those from the Feasibility Study, released May, 2015. FINANCIAL METRICS 2015 2016 GMEL project financing requirements US$M 1,361.1 831.90 Net Present Value (NPV) US$M 1,399.80 1,592.98 Discount Rate % 8 10 Internal Rate of Return (IRR) % 21.8 43.4 Cumulative free cash flow** US$M 7,177.10 8,879.10 Payback period Years 6 5 REVENUE - ANNUAL AVERAGE Total US$M 755.1 710.9 Uranium US$M 73.2 51.0 Critical Rare Earth Mixed Oxide [CMREO] US$M 584.7 611.8 Lanthanum and Cerium products US$M 82.7 33.6 Other by products US$M 14.5 14.5 COSTS - ANNUAL AVERAGE Project Operating Costs US$M/a 237.4 252.10 Separation Costs US$M/a 190.4 82.80 Total Cost US$M/a 427.8 334.9 Total Cost - US$/kg 19.32 11.18 MARGIN Operating margin after separation costs US$M 329.6 376.1 REFINERY RECOVERIES Uranium % 90 86 Rare Earth Elements % 70 87 The updates to the FS can be grouped into: * Technical improvements * Revised cost and price assumptions * The impact of third party financing options 5
Figure 1. Graphical representation highlighting the impacts of key areas addressed in the feasibility update. Of the three main areas addressed, technical improvements have the largest positive impact on both the project Net Present Value, and Internal Rate of Return. 6
Mining License Application In December, 2015, GMEL submitted an exploitation (mining) license application for the Kvanefjeld project to the Greenland Government. The application included the feasibility study, and environmental and social impact assessments. Considerable progress has been made, with initial reviews of a number of components having been received by the Company. This includes the maritime study, social impact assessment, and environmental impact assessment. For further information on the application see the Company announcement, December 2 nd, 2015. The Company has held follow-up meetings with respective government department representatives to discuss reviews and recommendations. Revisions and modifications are being addressed, and the studies will then be updated before they are prepared for public hearing. The Danish Centre for the Environment has been reviewing the EIA, and specific components have been forwarded on to independent expert groups. GMEL will look to provide further updates to the permitting timeline as the review process continues. Greenland Government Ups Promotional Initiatives: South Korea Trade Mission The Greenland Government continues to work to promote its emerging industry and business opportunities to international forums. GMEL recently joined a delegation headed by Greenland s Minister for Industry, Labour, Trade and Foreign Affairs, Mr Vittus Qujaukitsoq, together with other senior government representatives on a Trade Mission to South Korea. In recent years, Greenland has developed stronger political and commercial ties with South Korea, and other Asian nations. The Trade Mission showcased a cross section of Greenland s mining opportunities with an emphasis on advanced projects, along with Greenland s tourism and fisheries industries. Such forums provide an excellent opportunity for the Greenland Government to outline its clear desire to develop and grow its natural resource sector, its strong support for industry, and the efforts to build trade ties. The forum was an a excellent opportunity for the Company to update on the Kvanefjeld Project to a cross section of major industrial groups that are consumers of both rare earth products and uranium, as well as infrastructure providers. Kvanefjeld is a high profile mining project for Greenland with mining license application documents currently undergoing review, following pre-hearing and terms-of-reference approvals in 2015. Important progress has been made by the Greenland Government to enhance its regulatory framework in order to manage the production and export of uranium in accordance with international best practice. 7
The Company would like to acknowledge the promotional efforts of the Greenland Government to support industry, and present a clear and positive backdrop for foreign investment. Corporate Update Resignation of Directors Late in Q1, the company announced the resignation of Mr Jeremy Whybrow as a Director of the Company. Jeremy had been a founding Director of the Company. From 2007 to 2010 he held the position of Executive Director Exploration, and played in key role in planning and implementing the extensive exploration programs that led to the delineation of one of the world s largest JORC-code compliant resources of rare earth elements and uranium. In April 2010, Mr Whybrow moved to a nonexecutive role. At the start of Q2, the company announced the resignation of Mr Michael Hutchinson as a Director of the Company. Mr Hutchinson joined the Company in November 2008 as Chairman, a role he held until September 2014, when he moved to the position of Non-Executive Director. The Company is currently considering new candidates to renew and enhance the boards skill sets as it evolves to an increased focus on permitting and commercial development. -ENDS- 8
About the Kvanefjeld Project GMEL s primary focus is centred on the northern Ilimaussaq Intrusive Complex in southern Greenland. The project includes several large scale multi-element resources including Kvanefjeld, Sørensen and Zone 3. Global mineral resources now stand at 1.01 billion tonnes (JORC-code 2012 compliant). The deposits are characterised by thick, persistent mineralisation hosted within sub-horizontal lenses that can exceed 200m in true thickness. Highest grades generally occur in the uppermost portions of deposits, with overall low waste-ore ratios. Less than 20% of the prospective area has been evaluated, with billions of tonnes of lujavrite (host-rock to defined resources) awaiting resource definition. While the resources are extensive, a key advantage to the Kvanefjeld project is the unique rare earth and uranium-bearing minerals. These minerals can be effectively beneficiated into a low-mass, high value concentrate, then leached with conventional acidic solutions under atmospheric conditions to achieve particularly high extraction levels of both heavy rare earths and uranium. This contrasts to the highly refractory minerals that are common in many rare earth deposits. The rigorously developed process route has been the subject of several successful pilot plant campaigns. The Kvanefjeld project area is located adjacent to deep-water fjords that allow for shipping access directly to the project area, year round. An international airport is located 35km away, and a nearby lake system has been positively evaluated for hydroelectric power. Kvanefjeld is slated to produce a significant output of critical rare earths (Nd, Pr, Eu, Dy, Tb, Y), with byproduction of uranium, zinc, and bulk light rare earths (La, Ce). Low incremental cost of recovering byproducts complements the simple metallurgy to deliver a highly competitive cost structure. Rare earth elements (REEs) are now recognised as being critical to the global manufacturing base of many emerging consumer items and green technologies. In recent years growth in rare earth demand has been limited by end-user concerns over pricing instability and surety of supply. Kvanefjeld provides an excellent opportunity to introduce a large stable supplier at prices that are readily sustainable to endusers. In addition rare earths from Kvanefjeld will be produced in an environmentally sustainable manner further differentiating it as a preferred supplier of rare earth products. These factors serve to enhance demand growth. Uranium forms an important part of the global base-load energy supply, with demand set to grow in coming years as developing nations expand their energy capacity. 9
Tenure, Permitting and Project Location Tenure Greenland Minerals and Energy Ltd (ABN 85 118 463 004) is a company listed on the Australian Securities Exchange. The Company has conduct extensive exploration and evaluation of license EL2010/02. The Company controls 100% of EL2010/02 through its Greenlandic subsidiary. The tenement is classified as being for the exploration of minerals. The project hosts significant uranium, rare earth element, and zinc mineral resources (JORC-code compliant) within the northern Ilimaussaq Intrusive Complex. Historically the Kvanefjeld deposit, which comprises just a small portion of the Ilimaussaq Complex, was investigated by the Danish Authorities. GMEL has since identified a resource base of greater than 1 billion tonnes, including the identification and delineation of two additional deposits. The Company has conducted extensive metallurgical and process development studies, including large scale pilot plant operations. Permitting Greenland Minerals and Energy Limited is permitted to conduct all exploration activities and feasibility studies for the Kvanefjeld REE-uranium project. The company s exploration license is inclusive of all economic components including uranium and REEs. A pre-feasibility study was completed in 2012, and a comprehensive feasibility study completed in 2015. A mining license application was handed over to the Greenland Government in December 2015, which addresses an initial development strategy. The project offers further development opportunities owing to the extensive mineral resources. Location The exploration lease covers an area of 80km 2 in Nakkaalaaq North on the southwest coast of Greenland. The project is located around 46 00 W and 60 55 N. The town of Narsaq is located approximately 8 kilometres to the south west of the license area. Narsaq is connected to Narsarsuaq International Airport by commercial helicopter flights operated by Air Greenland. Local transport between settlements is either by boat or by helicopter. The Company has office facilities in Narsaq where storage, maintenance, core processing, and exploration activities are managed. This office supports the operational camp located on the Kvanefjeld Plateau above the town where the operational staff are housed. Access to the Kvanefjeld plateau (at approximately 500m asl) is generally gained by helicopter assistance from the operations base located on the edge of the town of Narsaq. It is possible to access the base of the plateau by vehicle and then up to the plateau by a track. 10
Overview of GMEL s 100% controlled license EL2010/02. A mining license application has been lodged. Exploration License Location Ownership EL 2010/02 Southern Greenland Held by Greenland Minerals and Energy (Trading) A/S, a fully owned subsidiary of GMEL. Capital Structure As at 31 st March 2016 Total Ordinary shares 787,737,747 Quoted options exercisable at $0.20 on or before 30 June 2016 105,657,865 Quoted options exercisable at $0.08 on or before 30 September 2018 100,693,512 Unquoted options exercisable at $0.20 on or before 24 February 2018 7,500,000 Unquoted options exercisable at $0.25 on or before 24 February 2018 7,500,000 Employee rights (refer to announcement 4/10/2013 for terms) 9,685,500 Please visit the company s website at www.ggg.gl where recent news articles, commentary, and company reports can be viewed. 11
Statement of Identified Mineral Resources, Kvanefjeld Project, Independently Prepared By SRK Consulting (February, 2015) Multi-Element Resources Classification, Tonnage and Grade Contained Metal Cut-off Classification M tonnes TREO 2 U 3 O 8 LREO HREO REO Y 2 O 3 Zn TREO HREO Y 2 O 3 U 3 O 8 Zn (U 3 O 8 ppm) 1 Mt ppm ppm ppm ppm ppm ppm ppm Mt Mt Mt M lbs Mt Kvanefjeld - February 2015 150 Measured 143 12,100 303 10,700 432 11,100 978 2,370 1.72 0.06 0.14 95.21 0.34 150 Indicated 308 11,100 253 9,800 411 10,200 899 2,290 3.42 0.13 0.28 171.97 0.71 150 Inferred 222 10,000 205 8,800 365 9,200 793 2,180 2.22 0.08 0.18 100.45 0.48 150 Total 673 10,900 248 9,600 400 10,000 881 2,270 7.34 0.27 0.59 368.02 1.53 200 Measured 111 12,900 341 11,400 454 11,800 1,048 2,460 1.43 0.05 0.12 83.19 0.27 200 Indicated 172 12,300 318 10,900 416 11,300 970 2,510 2.11 0.07 0.17 120.44 0.43 200 Inferred 86 10,900 256 9,700 339 10,000 804 2,500 0.94 0.03 0.07 48.55 0.22 200 Total 368 12,100 310 10,700 409 11,200 955 2,490 4.46 0.15 0.35 251.83 0.92 250 Measured 93 13,300 363 11,800 474 12,200 1,105 2,480 1.24 0.04 0.10 74.56 0.23 250 Indicated 134 12,800 345 11,300 437 11,700 1,027 2,520 1.72 0.06 0.14 101.92 0.34 250 Inferred 34 12,000 306 10,800 356 11,100 869 2,650 0.41 0.01 0.03 22.91 0.09 250 Total 261 12,900 346 11,400 440 11,800 1,034 2,520 3.37 0.11 0.27 199.18 0.66 300 Measured 78 13,700 379 12,000 493 12,500 1,153 2,500 1.07 0.04 0.09 65.39 0.20 300 Indicated 100 13,300 368 11,700 465 12,200 1,095 2,540 1.34 0.05 0.11 81.52 0.26 300 Inferred 15 13,200 353 11,800 391 12,200 955 2,620 0.20 0.01 0.01 11.96 0.04 300 Total 194 13,400 371 11,900 471 12,300 1,107 2,530 2.60 0.09 0.21 158.77 0.49 350 Measured 54 14,100 403 12,400 518 12,900 1,219 2,550 0.76 0.03 0.07 47.59 0.14 350 Indicated 63 13,900 394 12,200 505 12,700 1,191 2,580 0.87 0.03 0.07 54.30 0.16 350 Inferred 6 13,900 392 12,500 424 12,900 1,037 2,650 0.09 0.00 0.01 5.51 0.02 350 Total 122 14,000 398 12,300 506 12,800 1,195 2,570 1.71 0.06 0.15 107.45 0.31 Multi-Element Resources Classification, Tonnage and Grade Contained Metal 12
Statement of Identified Mineral Resources, Kvanefjeld Project, Independently Prepared By SRK Consulting (February, 2015) Cut-off Classification M tonnes TREO 2 U 3 O 8 LREO HREO REO Y 2 O 3 Zn TREO HREO Y 2 O 3 U 3 O 8 Zn (U 3 O 8 ppm) 1 Mt ppm ppm ppm ppm ppm ppm ppm Mt Mt Mt M lbs Mt Sørensen - March 2012 150 Inferred 242 11,000 304 9,700 398 10,100 895 2,602 2.67 0.10 0.22 162.18 0.63 200 Inferred 186 11,600 344 10,200 399 10,600 932 2,802 2.15 0.07 0.17 141.28 0.52 250 Inferred 148 11,800 375 10,500 407 10,900 961 2,932 1.75 0.06 0.14 122.55 0.43 300 Inferred 119 12,100 400 10,700 414 11,100 983 3,023 1.44 0.05 0.12 105.23 0.36 350 Inferred 92 12,400 422 11,000 422 11,400 1,004 3,080 1.14 0.04 0.09 85.48 0.28 Zone 3 - May 2012 150 Inferred 95 11,600 300 10,200 396 10,600 971 2,768 1.11 0.04 0.09 63.00 0.26 200 Inferred 89 11,700 310 10,300 400 10,700 989 2,806 1.03 0.04 0.09 60.00 0.25 250 Inferred 71 11,900 330 10,500 410 10,900 1,026 2,902 0.84 0.03 0.07 51.00 0.20 300 Inferred 47 12,400 358 10,900 433 11,300 1,087 3,008 0.58 0.02 0.05 37.00 0.14 350 Inferred 24 13,000 392 11,400 471 11,900 1,184 3,043 0.31 0.01 0.03 21.00 0.07 All Deposits Grand Total 150 Measured 143 12,100 303 10,700 432 11,100 978 2,370 1.72 0.06 0.14 95.21 0.34 150 Indicated 308 11,100 253 9,800 411 10,200 899 2,290 3.42 0.13 0.28 171.97 0.71 150 Inferred 559 10,700 264 9,400 384 9,800 867 2,463 6.00 0.22 0.49 325.66 1.38 150 Grand Total 1010 11,000 266 9,700 399 10,100 893 2,397 11.14 0.40 0.90 592.84 2.42 1 There is greater coverage of assays for uranium than other elements owing to historic spectral assays. U 3O 8 has therefore been used to define the cutoff grades to maximise the confidence in the resource calculations. 2 Total Rare Earth Oxide (TREO) refers to the rare earth elements in the lanthanide series plus yttrium. Note: Figures quoted may not sum due to rounding. -ENDS- 13
ABOUT GREENLAND MINERALS AND ENERGY LTD. Greenland Minerals and Energy Ltd (ASX: GGG) is an exploration and development company focused on developing highquality mineral projects in Greenland. The Company s flagship project is the Kvanefjeld multi-element deposit (rare earth elements, uranium, zinc). A pre-feasibility study was finalised in 2012, and a comprehensive feasibility study was completed in May, 2015. The studies demonstrate the potential for a large-scale, long-life, cost-competitive, multi-element mining operation. An exploitation license application for the initial development strategy was completed in 2015. In 2016, GMEL is focussed on working closely with Greenland s regulatory bodies on the processing of a mining license application, and maintaining regular stakeholder updates. A greater emphasis will also be placed on commercial development and progressing the dialogue with strategic partners. In addition, the Company will look to further value add initiatives afforded by the extensive resource inventory and prospective license holding. Dr John Mair David Tasker Christian Olesen Managing Director Professional PR Rostra Communication +61 8 9382 2322 +61 8 9388 0944 +45 3336 0429 Greenland Minerals and Energy Ltd will continue to advance the Kvanefjeld project in a manner that is in accord with both Greenlandic Government and local community expectations, and looks forward to being part of continued stakeholder discussions on the social and economic benefits associated with the development of the Kvanefjeld Project. Competent Person Statement Mineral Resources and Ore Reserves The information in this report that relates to Mineral Resources is based on information compiled by Mr Robin Simpson, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Simpson is employed by SRK Consulting (UK) Ltd ( SRK ), and was engaged by Greenland Minerals and Energy Ltd on the basis of SRK s normal professional daily rates. SRK has no beneficial interest in the outcome of the technical assessment being capable of affecting its independence. Mr Simpson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Robin Simpson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in the statement that relates to the Ore Reserves Estimate is based on work completed or accepted by Mr Damien Krebs of Greenland Minerals and Energy Ltd and Mr Scott McEwing of SRK Consulting (Australasia) Pty Ltd. Damien Krebs is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the type of metallurgy and scale of project under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears. Scott McEwing is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report in the form and context in which it appears. The mineral resource estimate for the Kvanefjeld Project was updated and released in a Company Announcement on February 12 th, 2015. The ore reserve estimate was released in a Company Announcement on June 3 rd, 2015. There have been no material changes to the resource estimate, or ore reserve since the release of these announcements. 14